Hut 8 has acquired two failed Texas data centers formerly operated by Poolin through a bankruptcy auction for $140 million, according to Poolin's bankruptcy records. The sale requires approval from the U.S. Bankruptcy Court in the District of New Jersey, with a hearing scheduled for September 29.
The acquisition includes Poolin's Pyote and Tarbush assets in Texas. Combined with Hut 8's existing 1.5 gigawatts of deployed power capacity across various Texas sites, the addition expands the company's footprint at a time when grid connectivity has become critical infrastructure for both artificial intelligence and Bitcoin mining operations.
Shift Toward Power and AI Workloads
Hut 8's strategy reflects a significant departure from traditional mining-focused operations. In the second quarter, the company announced 949 MW of contracted IT capacity valued at an estimated $26.6 billion in base-term contracts, with projected average annual net operating income exceeding $1.75 billion.
The company's first Beacon Point AI lease of 352 MW was valued at $9.8 billion, according to reporting from May. Hut 8's current approach prioritizes acquiring power capacity and then allocating it to whichever workload offers better profitability.
Grid Access Commands Premium Pricing
Market dynamics are reshaping infrastructure valuations. According to CoinShares' Q2 report, the United States faces over 225 restrictions on data center development across 30 states, with 151 still in effect. The interconnection queue contains over 2,600 GW of capacity, with data centers representing 87 percent of ERCOT's large-load queue at 410 GW.
A CBRE report found that available capacity in North America's four largest data center markets has reached historic lows. Northern Virginia had only 0.3 percent vacant space in the first quarter of the year.
This scarcity has created a valuation gap. Three fully leased AI facilities in Northern Virginia recently sold for approximately $27 million per MW, while some listed miners' energized but unleased capacity traded for less than $3 million per MW.
Economics Favor AI Over Mining
Converting mining infrastructure to support AI workloads requires significant investment. CoinShares estimates conversion costs of $8 million to $15 million per MW, compared with $0.7 million to $1 million per MW for mining-only infrastructure.
Revenue potential justifies the expense. Industry data indicates AI workloads can generate three to twenty-five times greater revenue per MW compared to Bitcoin mining. CoinShares models estimate AI work could generate approximately $1.5 million in annual profit per MW versus $0.5 million for mining.
Bitcoin mining faced headwinds in the second quarter. Bitcoin ended June at $58,400, while listed miners faced a weighted-average ex-tax cash cost of approximately $75,500 per coin, placing the sector below cash breakeven overall. Conditions improved by mid-August as Bitcoin recovered and hash prices strengthened.
Texas Grid Scrutiny
Hut 8 stated on August 10 that it welcomed Texas scrutiny of grid reliability, local resources, and community impacts. On September 21, Governor Greg Abbott directed the Texas Commission on Environmental Quality to halt data-center permits until ERCOT completes a grid audit and reviews water impacts.
Global demand for data-center capacity continues rising. The International Energy Agency expects data-center electricity demand to roughly double from 485 TWh in 2025 to 950 TWh in 2030. PwC projects $31.6 trillion in global data-center capital spending through 2050.
